Department of the Air Force, Air Force Space Command, 21CONS (Bldg 365), Specialized Flight-IT, O&M, Tech Serv, IT Resources, 135 E ENT Ave STE 101, Peterson AFB, CO, 80914-1385

S -- UTILITIES PRIVATIZATION AT PETERSON AFB CO SOL F05604-00-R-9925 DUE 032000 POC Judy Blomquist, Contracting Officer, Phone 719-556-7514, Fax 719-556-7396, Email judy.blomquist@peterson.af.mil -- Rick Orona, Contract Specialist, Phone (719) 556-7506, Fax (719) 556-7396, Email WEB: Visit this URL for the latest information about this, http://www.eps.gov/cgi-bin/WebObjects/EPS?ACode=P&ProjID=F05604-00-R-9 925&LocID=532. E-MAIL: Judy Blomquist, judy.blomquist@peterson.af.mil. This proposed contract action is for utility privatization at Peterson Air Force Base, CO for which the Government intends to solicit and negotiate only with Colorado Springs Utilities under the authority of FAR 6.302-1. Interested persons may identify their interest and capability to respond to the requirement or submit proposals. This notice of intent is not a request for competitive proposals. However, all responses received within fifteen days after date of publication of this synopsis will be considered by the Government. A determination by the Government not to compete this proposed contract based upon responses to this notice is solely within the discretion of the Government. Information received will normally be considered solely for the purpose of determining whether to conduct a competitive procurement. The following facts warrant the need to pursue this action on a sole source basis: 1. Peterson AFB is located on land leased from the City of Colorado Springs. The lease, dated 28 March 1967, is valid until 30 June 2066 and states that the Government has the right to use roads, streets, passageways, sewage facilities, utilities and easements necessary for utilization of said premises. The lease included the utility infrastructure in place at that time. Subsequently, the Government has added buildings and supporting utility infrastructure, which it currently owns. The added utility infrastructure is Government owned during the term of the lease, but must be removed, abandoned, or disposed of at the conclusion of the lease. If the Government does not opt to remove the added utility infrastructure, ownership transfers to the City. The Government can sell to a third party only that property interest which it has in the utility infrastructure. That interest is ownership of the added utility infrastructure with the right to remove it upon the end of the lease. Sale to any entity other than Colorado Springs Utilities (an entity of the City of Colorado Springs) could only provide valid ownership interest of the Government owned utility infrastructure through the term of the lease, which ends in 2066. Any third party ownership interest exceeding that set forth above would require the consent of the City of Colorado Springs, who has affirmatively stated that such consent will not be forthcoming. 2. Government records show that the following percentages of utility infrastructure is still the original property of the City of Colorado Springs: 26% of gas main, 27% of sanitary sewage main, and 21% of the water distribution main. The entire electric distribution system has been replaced and therefore belongs entirely to the Government. However over the years, the Government has replaced portions of the City gas, water and wastewater owned systems and has added portions as necessitated by construction. This replacement and addition has created an irregular ownership of the gas and water distribution and wastewater collection systems. The Government_s and the City_s systems have become so interwoven that it is no longer economically or technically feasible to separate them. When the City and the Government entered into the lease there were 39 buildings on the premises. Since 1967, the Government has added approximately 160 buildings and the supporting utility infrastructure. However, the added infrastructure is dependent on the original mains that were present at the inception of the lease. For example, one of the typical flight line maintenance buildings on base, building 121, has approximately 30 lineal feet of 2" water line that connects to a 10" City owned water line; 40 lineal feet of 4" sewer line tied into an 8" City owned sewer main; and 50 lineal feet of 2" natural gas line which is tied into an 4" City owned natural gas main. There are also portions of the gas, water, and wastewater systems that cannot be conclusively identified. For example, contractors who have been excavating on base may have hit a City owned gas, water, or wastewater line and thusly had to replace a portion. Also, Government maintenance personnel may have replaced valves, as they have become inoperable. These line or valve replacements appear not to have been recorded in Base records. Because the Government currently has the responsibility to maintain the entire system the specific identification of these replaced portions of pipe or replaced valves was not an issue. Specific identification of the Government owned system is a major difficulty, however, if the Government were to attempt to sell their portion of the system a definitive bill of sale cannot be developed for the property owned by the Government versus that which still belongs to the City of Colorado Springs. The Government has no authority to sell those portions of the utility infrastructure which it does not own. If the Government were to sell its portion of the utility infrastructure it would be conveying parts of a system, which by themselves are not functional. For example, laterals are dependent upon the mains, some of which are not owned by the Government. Consequently, the only entity which can, as a practical matter, purchase the Government's share of the system, is the City of Colorado Springs or their utility entity, CSU. Responses to this notice as well as any questions should be directed to 21 CONS/LGCZA, Attention of Ms. Judy Blomquist, 135 E. Ent Avenue, Suite 114, Peterson AFB, CO 80914-1385. Phone (719) 556-7514. Posted 03/02/00 (D-SN430565). (0062)

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